Super saving kids exceeding adults in financial literacy according to Kit report

Kids as young as six years old are showing a remarkable uptick in financial literacy, according to a report by Kit. The study, covering more than 4,000 families, paints a more positive picture of family finance in comparison to the latest HILDA survey—which found each age group experiencing a decline in financial literacy and that adults struggled to answer basic questions about money.

Kit’s report found that kids (6-18) are not only frequently engaging their parents and carers in money conversations, but also around 87% of kids are making purchases with their own money. Kids are also showing a greater ability to plan for their financial future with 74% of children saving their own money.

Kids financial literacy pulling ahead of adults

According to Kit Managing Director Yish Koh, the increase in kids' financial literacy could suggest “that parents are really beginning to understand the importance of teaching financial literacy to their kids; it could also mean they want to avoid their kids making the same financial mistakes they did.”

Koh also suggests that a concern from the increase in gamification and the ease of access of digital payments has seen a push by parents towards greater financial education for their children. 

How to help kids save more

Here is another reason why kids are probably having more money conversations - apps. Kid focused saver apps add fun and interesting ways of using money. An example of this would be kids app spriggy's custom cards that include their own designs as well as disney, star wars, and DC superhero customisation as well. 

Greater financial education is only one piece of the puzzle, kids should also have practical solutions beyond just a piggy bank. Thankfully, to that end, there are loads of handy apps geared towards youth saving like Commbank’s Kit, Virgin Money Booster Saver & Go (14-17), and Auswide bank’s Ziggy Kids Saver Account (15 and under).

No wonder kids are finding more engagement in personal finance when they have so many options available to them. Alongside the ease of access to information afforded by the internet, parents and carers must be feeling relieved to hear about an ever increasing number of useful apps. 

Maybe you’ve heard of these apps but you’re not sure which one would be good for your kid. At Mozo, our database helps you to compare between kids savings accounts so that you can get the account that works for you and your child. Be sure to compare savings accounts below.